Bloomberg Law
Feb. 2, 2022, 9:13 PM

Labor Department Fiduciary Rule Rewrite Draws Lawsuit in Texas

Jacklyn Wille
Jacklyn Wille
Legal Reporter

The Labor Department’s 2020 fiduciary exemption is an impermissible attempt to rewrite and expand the definition of ERISA fiduciaries in violation of federal law, a group representing insurance and annuity distributors said in a federal lawsuit filed Wednesday in Dallas.

The lawsuit, filed by the Federation of Americans for Consumer Choice Inc., challenges Trump-era regulatory guidance on when an investment adviser will qualify as a fiduciary subject to the statutory obligations of the Employee Retirement Income Security Act. The Federation says this rule, issued after the U.S. Court of Appeals for the Fifth Circuit vacated a tougher, Obama-era rule, suffers ...